AMD 2002 Annual Report Download - page 69

Table of Contents
NOTE 8: Interest Expense & Interest and Other Income, Net
Interest Expense
2002 2001 2000
(Thousands)
Total interest charges $ 82,060 $ 68,403 $ 86,488
Less: interest capitalized (10,711) (7,043) (26,451)
Interest expense $ 71,349 $ 61,360 $ 60,037
In 2002, interest expense consisted primarily of interest incurred under the Dresden Loan Agreement and interest on the Company’s 4.75% Debentures
issued in January 2002. In 2001, interest expense consisted primarily of interest incurred under the Dresden Loan Agreement and interest on the Company’s 6%
Convertible Subordinated Notes due 2005 issued in May 1998, which were redeemed in May 2001.
Interest and Other Income, Net
2002 2001 2000
(Thousands)
Interest income $ 35,390 $ 56,424 $ 59,228
Other income (loss), net (3,258) (30,729) 27,073
$ 32,132 $ 25,695 $ 86,301
Other income (loss), net in 2002 and 2001 consisted of charges for other than temporary declines in the value of the Company’s marketable debt and
equity securities investments totaling approximately $4.7 million and $27 million, respectively.
NOTE 9: Segment Reporting
AMD operated in two reportable segments during 2002: the Core Products segment, which reflects the aggregation of the PC processor, memory products
and Other IC products operating segments, and the Foundry Services segment. The aggregation of the Company’s operating segments into the Company’s
reporting segments was made pursuant to the aggregation criteria set forth in Statement of Financial Accounting Standards No. 131 (SFAS 131). The Core
Products segment includes microprocessors, Flash memory devices, Erasable Programmable Read-Only Memory (EPROM) devices, embedded processors,
platform products, personal connectivity solutions products and networking products. The Foundry Services segment includes fees for products sold to Legerity
and Vantis. During 2000, the Company also operated in the Voice Communications segment. The Voice Communications segment included voice
communications products of the Company’s former subsidiary, Legerity, until July 31, 2000, the effective date of its sale. The accounting policies of the
segments are the same as those described in the Summary of Significant Accounting Policies. The Company evaluates performance and allocates resources based
on these segments’ operating income (loss).
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Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003